State Income Tax Rates for 2026: Every State and DC

2026 top income tax rate by state

"Top rate" means the highest statutory rate on ordinary income. Local income taxes (for example NYC, Maryland counties and Ohio cities) are not included. Where a rate changed during 2026, the note explains it.

Flat-tax states in 2026

The flat-tax states are Arizona, Colorado, Georgia, Idaho, Illinois, Indiana, Iowa, Kentucky, Louisiana, Michigan, Mississippi, North Carolina, Ohio, Pennsylvania and Utah. Massachusetts uses a flat 5% plus a millionaire surtax, which makes 16 if you count it. Ohio joined in 2026 with 2.75% on nonbusiness income above $26,050. "Flat" doesn't mean everyone pays the same share of their income. Standard deductions, exemptions and zero-rate amounts (like Mississippi's first $10,000) make these taxes mildly progressive in practice.

Why the top rate doesn't tell the whole story

Your effective state rate (tax ÷ income) is almost always far below the top rate. In California, a single filer with $85,000 of wages pays about $3,516 in state income tax in 2026, an effective rate of 4.1%, even though the top bracket is 13.3%. In Virginia the 5.75% top rate starts at just $17,000, so a $60,000 earner pays close to the top rate on most of their income.

Local taxes can matter as much as the state rate. A Baltimore resident pays the 3.2% Baltimore City rate on top of Maryland's brackets. A Philadelphia resident pays a 3.735% city wage tax (from July 1, 2026) on top of Pennsylvania's 3.07%.

Highest and lowest income tax states for 2026

• Highest top rates: California 13.3%, Hawaii 11%, New York 10.9%, New Jersey and DC 10.75%, Oregon 9.9%, Minnesota 9.85%.
• Lowest rates among states with an income tax: Arizona and North Dakota (2.5% top), Ohio (2.75%), Indiana (2.95%), Louisiana (3.0%), Pennsylvania (3.07%).
• Biggest 2026 cuts: South Carolina (6.0% → 5.21%), Nebraska (5.2% → 4.55%), Kentucky (4.0% → 3.5%), Mississippi (4.4% → 4.0%).
• Coming increases: Hawaii adds a 13% bracket in 2027, and Washington's 9.9% tax on income over $1 million starts in 2028.

Same salary, different state: $70,000 in six states

Top rates alone can mislead, so here is what a single filer earning $70,000 in wages pays in state income tax for 2026, using our paycheck engine with each state's standard deduction, exemptions and brackets. Local taxes and state payroll premiums are left out so the comparison is income tax only.

• Pennsylvania's flat 3.07% has no standard deduction, so the whole salary is taxed. Its low rate still keeps the bill small.
• California's 9.3% bracket starts at $75,197 of taxable income, so this worker pays a lower effective rate than in flat-tax Illinois or North Carolina.
• Virginia's 5.75% top rate starts at $17,000, so a middle earner pays it on most of their income.

Reciprocity: living in one state and working in another

Normally the state where you work taxes your wages and your home state gives you a credit for that tax, so you file two returns. Reciprocity agreements skip that step: you pay only your home state, and you give your employer an exemption certificate so it withholds for your home state instead.

Pennsylvania has reciprocal agreements with Indiana, Maryland, New Jersey, Ohio, Virginia and West Virginia. A New Jersey resident working in Philadelphia, for example, pays New Jersey income tax rather than Pennsylvania's 3.07%. Local wage taxes such as Philadelphia's are not covered by reciprocity. Several Midwest states have their own agreements. If your employer withholds for the wrong state, file the work state's nonresident return to get it refunded and pay your home state.